Cincinnati Financial Corporation (Nasdaq: CINF) today announced that The Cincinnati Insurance Companies' property casualty group expects its second-quarter results to include pretax catastrophe losses of approximately $160 million to $170 million, representing an impact on the second-quarter 2016 combined ratio of approximately 14.4 to 15.3 percentage points, based on estimated property casualty earned premiums. The company's 10year historical average contribution of catastrophe losses to the combined ratio is 13.4 percentage points for the second quarter. Catastrophe losses from storm damage affect property casualty insurance underwriting income, one of the sources of consolidated net income along with profits from investment operations and life insurance operations.
The company estimates its second-quarter 2016 property casualty combined ratio will be in the range of 98 percent to 101 percent, including the effect of the significant storm-related losses.
Steven J. Johnston, president and chief executive officer, commented, "It was a stormy spring in the South and Midwest, and our teams of claims professionals worked quickly to provide the highest quality of service to affected policyholders. Roughly one-third of our second-quarter catastrophe losses came from hail damage to commercial properties in the San Antonio, Texas, area.
"The financial strength of Cincinnati Insurance continues to benefit our independent agents and policyholders, giving us ample capacity to absorb storm losses and other insured loss events."
Cincinnati Financial plans to report final results for the second quarter on Tuesday, July 26, 2016, after the close of regular trading on the Nasdaq Stock Market. A conference call to discuss the results will be held at 11 a.m. ET on Wednesday, July 27, 2016, with a live, audio-only internet broadcast available at cinfin.com/investors.
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